A new bill seeking the exemption of cryptocurrencies from securities law has been submitted for review by the Colorado Senate and could gather momentum in the coming months.

The bill called the “Colorado Digital Token Act” is supported by Republican Jack Tate and Democrat Steve Fenberg and was unveiled on January 4 to the council.

Although the documents did not provide a broader view of the securities law which the Senators hope to exempt cryptocurrencies from, it proposes that the new asset class should be allowed to exist without “securities registration and securities broker-dealer and salesperson licensing requirements for persons dealing” with it.

It also specified an “enlightened” definition for cryptocurrencies which practically showed why they should not be classified as a security. Unlike securities, digital tokens were described by the Senators as a unit that is “exchangeable for goods or services, and capable of being traded or transferred between persons without an intermediary or custodian of value.”

In the documents, the lawmakers also expressed a conviction that approving the bill will set the tone for Colorado to become a hub for blockchain and cryptocurrency companies. Enthusiasts will hope that somehow, the appointment of Pro-Bitcoin Governor, Jared Polis will make the journey to approval a smooth one for the bill.

Should Cryptocurrencies Be Classified As Securities?

The newly introduced bill marks the latest in a string of recent efforts by U.S Senators to save digital tokens from the securities classification, given to the emerging asset class by the Securities and Exchanges Commission (SEC).

In mid-December, US Reps Warren Davidson and Darren Soto introduced to the House a bill called “Token Taxonomy Act” with the same goal of exempting digital tokens from securities law.

While both bills are expected to gather momentum with the turn of the year, U.S SEC Chairman, Jay Clayton had earlier declared that nearly all digital tokens issued by ICOs are non-compliant and should be regulated under the same umbrella as traditional securities.

Only time will tell if the bills will be passed into law to bring an end to the regulatory uncertainty currently faced by the U.S crypto industry.